26/03/2014
LIZ MCDONALD
New Zealand has made a top 10 list of investment locations for global property investors for the first time.
The list comes from a survey by the Association of Non-Listed Real Estate Investors (Anrev), based in Hong Kong.
The survey asked investors and fund managers in North America, Europe and Asia Pacific to name their top investment destinations in the Asia Pacific region.
"This indicates that New Zealand is now a leading destination for capital; however, international investors see it as a key location in the Asia Pacific region," the Anrev report on the survey said.
Justin Kean, head of research and capital markets for real estate business JLL in New Zealand, said the country's "economic recovery kick" of the past 18 months was encouraging both local and international investment.
"Institutional investors are back in a buying mode, and this means that foreign wealth will start finding its way into the New Zealand property market".
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Kean said that with Anrev investors' combined portfolios worth US$2.016 trillion (NZ$2.57t), if they allocated "just one per cent of their assets to the New Zealand market, we would see US$20 billion (NZ$23b) of capital head this way."
The survey suggested investors were developing an appetite for increased risk, and were on the lookout for medium-to-high risk and return funds, and funds spanning different sectors and nations.
New Zealand came in at number eight on the top-10 list.
Number one was Japan, which was the top pick of more than two-thirds of investors and up from fifth place last year. For three years in a row, Australia ranked in second place but this time fund managers picked greater China as their preferred destination to invest, with Japan and Singapore second.
JLL's analysis of major commercial property sales in New Zealand last year showed they were worth $2b, a major jump since 2012 and the largest total since the financial downturn.
"Capital raising has been significant in the New Zealand market over the past year . . . more capital is heading in the way of property globally and we will start to see that impact on New Zealand over the year," said JLL's investment sales broker Andrew Brown.
Those responding to the survey gave diversification as their main reason for investing in real estate. More than half the investors in the Asia Pacific region expected to boost the real estate component of their portfolio in the next two years.
- © Fairfax NZ News
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10 Comments
whatever next
i guess the article talks only about international speculators only, so the headline should be changed. It reports in my view only about so-called investors with only short-term benefits in mind... not the good old investor looking for medium to long term benefit.
as the article stated ....the survey suggested investors were developing an appetite for increased risk, and were on the lookout for medium-to-high risk and return funds.....
I see these investors come and go and take everything with them.... and no long-term benefit for New Zealand... we need investors for sustained growth.
Reply 0
JamesClark2
Anyone from overseas is able to buy land here, but in many cases, e.g. China, Indonesia, Singapore, Thailand etc, we don't have reciprocal rights to buy land in their countries. It may be the era of free trade, but our political "leaders" haven't looked after our interests.
Reply +2
Col
oh dear, I'm sure the Reserve Bank is watching this, unfortunately they will have to use monetary policy to protect our economy, when the governments fiscal policy is contributing to its vulnerability.
and its the first home buyers who are reducing in number. most countries ensure fiscal policy protects housing affordability, this country has fiscal policies which reduce it.
Reply +1
the thinker
Not quite sure what you're on about Col. It doesn't say anywhere that fund managers can invest in residential - and I never mentioned whether they could either.
Reply 0
Col
The thinker, I think you were referring to my question about this comment
"It's actually commercial property they're talking about - not housing".
where does it say commercial property only, it just mentions real estate property and fund managers.
0
speights56
Of course we are, its blatantly obvious to any overseas buyer that NZ's can't afford to buy a house so they jump in boots and all and in doing so push the housing prices further up so that a house is now unattainable.Jeez not bloody rocket science is it !!!!
Reply +2
the thinker
It's actually commercial property they're talking about - not housing.
Reply 0
Col
the thinker
where does it say that, fund managers can invest in residential.
0
howlibag
In order to buy assets here, they must first buy NZ dollars. So this will drive the currency up even higher, further damaging our manufacturing/export sector. This will also inflate an already overheated property market, requiring the Reserve Bank to raise the OCR so we'll pay high interest rates as well. Google "dutch disease" to see where this ultimately leads.
We are the speculative playthings of overseas investors and hedge funds. We need to limit foreign
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